Litecoin is partnering with Coinut, a Singaporean crypto exchange, to provide Wrapped Litecoin (WLTC) tokens on Ethereum. These tokens will increase interoperability in between the 2 procedures with access to brand-new functions.
Litecoin’s rate has actually dropped given that this statement, and token wrapping may not have enough appeal to bring in broad adoption.
Litecoin’s WLTC Offering
Litecoin simply revealed a brand-new partnership with Coinut, a Singapore-based crypto exchange, to provide Wrapped Litecoin (WLTC). These tokens will be covered by means of the Ethereum network, making it possible for brand-new interoperability in between these 2 procedures. WLTC will be pegged 1:1 with Litecoin, helping with a maximally smooth experience.
“Litecoin is relied on by millions. Now, with Wrapped Litecoin, these users can access Ethereum’s community effortlessly and with confidence,” stated Xinxi Wang, Founder and CEO at Coinut.
The primary wave of covered ETH tokens occurred early in 2023, with the practice losing prominence in 2024. Litecoin is one of the earliest enduring altcoins and still rather popular in the market, so this statement might bring covered tokens back to the spotlight. Litecoin carried out well in the last month, although its cost has actually dropped a little given that the statement.
Litecoin Price Performance. Source: BeInCrypto
According to journalism release, the primary objective of WLTC performance is bridging the Ethereum and Litecoin blockchains. WLTC users will keep a comparable worth from their LTC tokens, and likewise access to numerous ETH apps. This will undoubtedly consist of greater liquidity thanks to Ethereum-based decentralized exchanges, however there are likewise intriguing app functions.
WLTC users will take pleasure in a few of the more customized functions of Ethereum’s blockchain, like ERC20 wise agreements. These clever agreements can open an universe of specialized dApp functions, such as staking, yield farming, lending/borrowing, and more. The Litecoin blockchain is not created to accommodate these interactions.
Coinut, for its part, has actually produced a safe and secure facilities for token wrapping. It partnered with 2 business for storage options: Coinbase for cold storage and Fireblocks for hot wallets.
The WLTC program will provide numerous brand-new chances to users, however that will not ensure market interest alone. The long-lasting practicality of covered LTC tokens may indicate whether token wrapping is still pertinent after 2023’s greater activity.
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